Elon Musk is ready to pay $15B out of pocket to buy Twitter
Tesla and SpaceX chief Elon Musk is reportedly following through on his proposal to buy Twitter with aid from investment bank Morgan Stanley.
Elon Musk recently offered to buy Twitter for $43 billion, and it has been revealed that he is willing to stake a large portion of that amount himself. While a regular route for acquisitions of this size includes partnerships with investment firms, it has been reported that Musk would be willing to pay a large amount himself, while also putting up his current Twitter stake as collateral for a loan.
According to the New York Post, two sources familiar with the matter said that Musk would be willing to put up $10 to $15 billion of his own money in the proposal, as well as leveraging his 9.1 percent stake in the company to pick up a favourable loan.
Reportedly, he is talking to investment bank Morgan Stanley to finance another $10 billion of the deal to purchase the social media platform.
A few days ago, Twitter co-founder and former CEO Jack Dorsey implicitly supported Musk's bid by saying that the company's board has been a source of "dysfunction" since the early days. This revelation came after Musk announced that he would reduce board salaries to $0 if he were to purchase the company, saving Twitter around $3 million instantly.
Twitter's share price closed yesterday at $47.69, lower than the $54.20 that Musk has offered to buy. Musk plans to launch a tender offer to all shareholders in ten days' time.